Benzinga - Popular Solana (CRYPTO: SOL) based meme coin platform Pump.Fun faced a scare on Thursday after a former employee exploited a vulnerability to manipulate the platform’s system.
What Happened: The incident, which saw the perpetrator siphon off roughly $1.9 million worth of SOL tokens, sent shockwaves through the platform’s user base.
“We are aware that the bonding curve contracts have been compromised and are investigating the matter,” Pump.Fun announced on Twitter amid the chaos. Trading was promptly halted, leaving users in the dark about the situation unfolding.
Exploit Explained
Fortunately, Pump.Fun released a detailed post-mortem explaining the exploit. In a nutshell, a former employee with privileged access leveraged “flash loans” from a Solana lending protocol.
These loans, essentially short-term borrowings, allowed the individual to:
Also Read: Donald Trump’s Election Odds Just Spiked To 51% According To This Crypto Prediction Market
Swift Action And Reassurance
Thankfully, the exploit only affected roughly $1.9 million out of the platform’s total $45 million liquidity pool. Pump.Fun reacted swiftly, redeploying the contracts and resuming trading with 0% fees for the next week.
The platform also pledged to make users whole for the affected coins. Here’s how:
- Coins reaching 100% during the exploit window will be listed on Raydium, a decentralized exchange, with at least the same amount of liquidity they had before the incident.
- The platform will waive trading fees for the next seven days.
“We have been working with some of the most esteemed security folks in the space to not only minimize the impact of the situation, but to ensure that this will never happen in the future,” Pump.Fun assured its users, thanking them for their trust.
Stay Ahead of the Curve
As the digital asset landscape continues to evolve, staying informed is crucial.
Benzinga’s upcoming Future of Digital Assets event on Nov. 19 offers a valuable opportunity to learn from industry leaders about the latest trends and innovations in the crypto space.
Read Next: BlackRock, Fidelity Lead $257M Bitcoin ETF Surge, As Analysis Predicts $74,000 Comeback
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.